Dumping refers to a country
A) imposing a retaliatory tariff against the subsidized products of a foreign country.
B) selling a good abroad at a price that is below its cost and lower than the price charged in the domestic market.
C) selling a good abroad at a price that is above its cost and higher than the price charged in the domestic market.
D) a and c
E) all of the above

Question

Quizplus · Accepted Answer

Dumping refers to the practice of selling goods in a foreign market at a price that is below the cost of production or lower than the price charged in the domestic market. This can be seen as an unfair trade practice as it may harm domestic producers in the foreign market. Dumping can also lead to anti-dumping measures such as tariffs or quotas imposed by the importing country to protect its domestic industry. Choice A is incorrect as it refers to retaliatory tariffs which are imposed in response to a tariff imposed by a foreign country. Choice C is incorrect as it refers to the opposite of dumping, i.e., charging a higher price in the foreign market than the domestic market. Choice D is incorrect as it includes both incorrect options.

Dumping Refers to a Country